What is a Debt Elimination Spreadsheet? It is a document containing the information needed for each debtor and is distributed to all the other debtors. A debt elimination spreadsheet is specially designed for debt consolidation so that it gives all debtors the basic information needed for repayment.
Debt elimination spreadsheets contain all the basic and essential details required for each debtor. A debt elimination spreadsheet does not include any debt settlement advice but it is made with the main intention of freeing up the debtor’s time so that he can deal with the debt himself. The spreadsheet helps the debtor in two ways; one, the debtor can calculate his liability through a simple calculation that shows the total debt divided by the total available income and, two, when a debtor reaches the repayment phase of the loan, he can calculate the amount of interest that he will have to pay on the unsecured part of the loan. Thus, he can manage his money and use the money for something else.
However, a debtor has to be aware that the monthly repayment schedule included in the spreadsheet is only a rough calculation and it does not take into account all the factors that can affect the number of monthly payments to be made. The debtor must also remember that it is the monthly repayment schedule, not the actual loan schedule, that matters and the monthly payments may differ considerably from what the spreadsheet suggests. A debtor cannot depend on the monthly repayment schedule to decide how much he should pay.
But, apart from helping the debtor in managing his money, a debt elimination spreadsheet also shows him how to solve his loan problems. For instance, when a borrower has missed a single payment, the spreadsheet tells him that he needs to pay the monthly installment of the following month because he has defaulted on the payment.
A spreadsheet, therefore, is a good tool for those who are facing financial difficulties and need to find solutions to their problems. However, before you do anything to save your life, it is important that you read all the terms and conditions first, so that you don’t get into any trouble later. It is not at all advisable to decide on your own without considering all the pros and cons.
When you look at a debt elimination spreadsheet, you see the debt as a whole. You can identify all the debts as your own, whether they are secured or unsecured loans, or credit cards, business loans and so on. A debtor should check every detail in the spreadsheet, whether it is your monthly installment, the interest rate, and the payment schedule.
If a debtor is being forced to pay more than his monthly installment, he should get more information from the creditors and, if possible, contact them. He should also find out if there is an offer of a deferred payment program that will eliminate the payment.
A debt elimination spreadsheet is a useful tool and it also allows a debtor to understand the whole picture of his debt. However, before you go ahead and use a debt elimination spreadsheet to solve your debt problems, you must consider all the pros and cons.